L3Harris to sell 60% stake in space propulsion business for $845M
L3Harris Technologies announced on Monday that it will sell approximately a 60% stake in its space propulsion and power systems business to private equity firm AE Industrial Partners for $845 million, including debt.
The transaction aligns with L3Harris’ strategy to pivot away from space-focused operations and concentrate more on defense capabilities amid an increasingly uncertain global geopolitical environment, News.Az reports, citing Reuters.
The company will, however, continue to have sole ownership of the RS-25 rocket engine, which is currently used on NASA's space launch system for the Artemis program.
The deal with AE Industrial, which was first reported by Reuters on Sunday, is expected to close in the second half of 2026.
AE Industrial said its partnership with L3Harris would also accelerate the development of future propulsion technologies, including nuclear propulsion, which will be critical to the exploration of Mars.
Its previous space investments include Firefly Aerospace, RedWire Space and York Space Systems.
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